Non-compliant Crypto platforms could face huge fines


Not complying with laws when offering financial services related to Crypto assets could carry a hefty fine or imprisonment.

Law firm Webber Wentzel says where any person is assisting another to buy, sell, manage, administer or keep in safe custody a crypto asset, this counts as providing financial services and one would need a Financial Service licence.

Legal consultant for Webber Wentzel, Lerato Lamola-Oguntoye says South Africa has opted for the term crypto assets, not crypto currency as crypto is not a legal tender and it’s not backed by the Reserve Bank.

“If you do not register as an FSP and you are supposed to, it is an offence under and the penalty there is the possibility of a fine of up to R10 million as well as the possibility of imprisonment for about 10 years, under FICA if you don’t register and you are supposed to be registered. It is considered an act of non-compliance, similarly under FICA you can get a fine of up to R10 million.”

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